Kiki5021 Kiki5021

27-05-2023
Business

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A floating rate mortgage loan is made for $110,000 for a 30-year period at an initial rate of 12 percent interest. However, the borrower and lender have negotiated a monthly payment of $880. Required: a. What will be the loan balance at the end of year 1? the end of year 2, how much interest will be accrued as negative amortization in year 2 b. If the interest rate increases to 13 percent and year 5 if the payment remains at $880? Complete this question by entering your answers in the tabs below. Required A Required B What will be the loan balance at the end of year 1? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

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